US Farm realty value shoots to record high in 2017

US Farm realty value shoots to record high in 2017

Real estate values for US farms have piqued to an all time high in 2017, amounting to $3,080/acre. The highest increase is experienced by California and The Corn Belt has witnessed the highest value.

Overland Park, Kansas – September 20, 2017 – 2017 seems to have dawned in good times for the US farms, at least in terms of real estate. The latest USDA Land Values Summary presents a stellar report which boasts an all-time record high of real estate value across the American farms this year. The average realty (all land and buildings) value in farms nationwide has averaged to $3,080/acre in 2017 which represents a great $70 up per acre (around 2.3%) compared to that of in 2016.

If we look back, the real estate values of US farms have been on rise since the last 2 decades, since 1998 and the values have piqued almost every year- barring the odd exceptions of 2009 and 2016. However, 2017 records the highest average of all times.

The realty values of American farms reached to $1,000 per acre in 1999 and rose to $3,000 per acre in 2015 and had maintained that heightened reach ever since. It was a huge leap from $2,000/acre back in 2007. From 1999 to 2015, the proportion of increment averages to 199% while it is something like 183 percent since 2000.

California reports of biggest increase

Overall 28 States have reported to witness a boost in farm real estate values in 2017. 11 States have reported of no change in values. As per the reports shared by renowned beef resource website Beef2live, California has experienced the biggest increase in farm values this year. Farm values in the State have moved up to $800 per acre to around $8,700. Next in the line is Wisconsin ($450/acre), followed by Florida and Arizona ($300/acre).

However, the picture is slightly grim for 7 States that experienced a price drop this year. The biggest drop in farm realty values in 2017 is reported from Indiana where prices are down to $150 per acre. Illinois follows suit with prices dropped to $100 per acre, followed by South Dakota ($70 per acre). The other 4 States with reduced farm realty values this year are Ohio, Nebraska as well as Missouri and Kansas.

The Corn Belt boasts highest values

Further reports from Beef2live hail Rhode Island as the zone with highest farm realty values this year. New Jersey comes to a close second, followed by Connecticut and Massachusetts. All these 4 States boast a stellar farm realty value that amounts to $10,000+ per acre each.

In regards to regional changes, the average farm real estate value has increased up to 8.7% for the Pacific belt. On the other hand, the Northern Plains zone has reported a 1.8% decrease. The highest increase is witnessed in the Corn Belt ($6,260/acre) while the Mountain zone had the lowest value ($1,130/acre).

Only 3 States have been found with farm real estate values below $1,000 acre- New Mexico, Montana and Wyoming.

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